Article on US Airways in today's Richmond paper

[Obi-Wan Pinobi]

Click here for today's front-page article. It basically speculates on what could happen and the impact of US Airways shutting down on Virginia's airports. US Airways makes up about 1/3 of the traffic in Richmond and Norfolk, and quite a bit more in smaller airports.

The article does say the airports have been working on contingency plans -- other airlines in the market increasing service to pick up the slack or new airlines coming into the market to provide service.

I do have a question for airline professionals about this one quote --

"If US Airways goes out, Richmond might have a decline in service for a week or two, but that would be it," said Darryl Jenkins, an industry consultant working with Richmond International.

Realistically, how quickly could things change? With airlines already serving Richmond like Delta or United, they already have the gate space and ground personnel, but they would still need more aircraft and more crewpeople to man the aircraft to provide service. Could they hire the former US Airways employees that quickly? Do the airlines make agreements between each other for contingencies like this? And how quickly could an airline that doesn't serve Richmond -- like Southwest or AirTran -- add service without gate space or ground personnel already in place?

 

[Docsknotinn]

Things can change mighty fast. You can be sure as we speak others are lobbying to get those routes etc in US Air goes under. It would be very unlikely that the existing US Air staff would be used. Many ground services, mechanical, de-iceing, fuel, cleaning, catering etc is mostly sub-contracted now except for the majors. Equipment changes can occur very fast. Typically a carrier that already has a relationship at the airport will be bidding hard on the routes/gates.

 

[DebbieB]

Pittsburgh's airport authority has been actively pursuing other airlines. Southwest announced this week that they will start flights in May. Air Tran has expanded service. They are also in negotiations with Jet Blue, Frontier & Spirit.

My bet is that USAir will not suddenly stop flying, they will negotiate with other airlines to buy aircraft and gates. Like American took over TWA.

 

[Docsknotinn]

I'll take that wager just for fun. I'm betting US Air will stop abruptly. US Air can not negotiate gates and routes alone. That is Subject to Airport and FAA approval to avoid any single airline controlling too much of a given area. Most aircraft are leased so it is unusual for another carrier to take existing equipment. It has happened but usually only with a carrier that has the same equipment in service. In bankrupcy all bets are off so who knows. If the lease co works a great deal another airline may take the existing US Air equipment, but even painting a plane is VERY costly.

 

[DebbieB]

If it happens, I think the liquidation would be in the hands of the bankruptcy judge as far as approvals, etc.

If there would be an abrupt service stop, it would be chaos here in Pittsburgh because at least 75%-80% of our flights are USAir. I'm not too concerned about vacations to WDW because I've got Air Tran booked, but I have some business trips coming up where USAir is the only direct carrier. For example, PIT/ABE (Allentown-Bethlehem, PA).

 

[roliepolieoliefan]

I think when SW starts flights in Pittsburgh that will be the end of USair. They are hanging on by a thread now. I booked our flight also with Airtran. Last time we flew with USAir, their customer service was beyond horrible and that was before all this bankruptcy stuff started.

 

[Docsknotinn]

What happens In Richmond and other areas will not have any bearing on PA. The FAA only allows so many routes. Sometimes those routes are moved to different cities. The bankrupcy judge has no control over this. The FAA gets the final say on routes. Now if US Air can negotiate a sale to another carrier and arrange with their creditors to take over their leases etc a Bankrupcy Judge would have to approve the sale, althought the FAA could deep six the whole deal. IMHO in our current economy it is far more likely that the majors will watch US Air take a nose dive then scramble to bid on their routes. There is a lot none of us could ever know such as their ( US Air) lease terms etc. They have been in trouble for a long time. Just like anyone with poor credit lease interest rates go higher. Not likely anyone will be running out to buy that up. The gates and service in PA will be very valuable to someone as US Air had such a grip there. I think a lot of the smaller areas they served in the past will go with out another carrier for some time.

 

[Obi-Wan Pinobi]

After rereading that article and reading what folks have said here, I get the feeling that the hubs -- Pittsburgh, Philadelphia, and Charlotte -- will be hit harder than the smaller towns.

Shenandoah Valley and Charlottesville have US Airways Express flights are provided by Colgan Air, an independent carrier, and Mesa Air Group operates US Airways Express in and out of Richmond. Certainly carriers like these would not be part of any liquidation and could either go it alone or align themselves with another airline. In fact, Mesa Air's web site shows they also code share with United and America West.

Somehow I don't think US Airways will stop abruptly. It's not like it will be unexpected. Could the bankruptcy judge order a one to two week notice between an announcement and the actual cease of operations? If not, I'm sure US Airways may have plans for something like that, just so passengers aren't left in the lurch.

 

[DVC-Don]

Our Sunday paper here has an article on US Air also. It said that most travel agencies in our area have stopped booking tickets on US Air after the baggage fiasco. It's beginning to look like the end of US Air.

 

[Docsknotinn]

Obi-wan, I don't think the judge could do that. I believe this is the reason the government has ruled on the stand by fees with other airlines. I think that actually the Hubs will be hit harder, but for a much shorter time. One things for sure. We will all find out in the near future. I went through this when I worked with Delta and the International route was sold. It's no fun looseing your job. You really gotta feel bad for all of the folks this will impact.

 

[Obi-Wan Pinobi]

It's no fun looseing your job. You really gotta feel bad for all of the folks this will impact.

I'm with you on that one! It may be interesting to discuss and speculate about what may happen, but people's livelihoods are at stake here.

I hope no one that works for US Airways is taking offense at all the speculation, and I definitely wish everyone the best should US Airways cease to exist.

 

[Docsknotinn]

I'll certainly second that. Nothing I have said is meant to offend any one. I'm just watching with interest as many others are. I'm certain things will work out in the end.